Galena Mining has delivered a feasibility study (FS) for the Abra base metals project in Western Australia that improves most key metrics compared to its pre-feasibility study (PFS).
The company has extended Abra’s mine life from 14 to 16 years, annually producing high-grade lead-silver concentrate of 95,000 tonnes (up from 91,000) of lead and 805,000 ounces (up from 760,000 ounces) of silver.
Abra’s FS is based on a 1.2 million tonnes a year throughput underground mine and conventional flotation concentrator.
The project FS also revealed a net present value (NPV) of $553 million, which is five per cent higher than the PFS.
“I’m very pleased that Abra has now completed FS-level technical and engineering work, with the project continuing to demonstrate sector-leading financial returns with a pre-tax NPV of $553 million,” Galena managing director Alex Molyneux said.
“It’s also important to have completed the study on time, given that it is a milestone to moving through the final phase of the project financing debt process, which is well under way.”
Galena has received all major approvals required to commence construction and is nearing completion of Abra’s development drilling program.
The company will also continue to finalise offtake, project financing debt and initial project development works. It expects first production to take place in 2021 and first full-year of steady state commercial production by 2022.